Clontarf Energy plc said it was considering further financing for its activities as the company’s losses reached £4.8 million from its oil and gas and more recent lithium interests.
FINANCES
The group has a 60% working interest in the Tano block in Ghana, a memorandum on the Chad Basin, and in 2023 signed a joint venture for direct lithium extraction in Bolivia.
Preliminary results for 2022 show losses of £4,766,646 (2021: £463,501), including £4,095,294 impairment from a 10% working interest on the Sasanof-1 exploration well offshore Western Australia, which was a dry hole.
The company’s net current liabilities of £2,094,612 (2021: £1,139,661) include £1,525,565 (2021: £1,420,565) owed to the directors for remuneration.
Clontarf said it would not seek settlement of the amounts in cash until after 2024.
The group had a cash balance of £931,902 (2021: £344,253) but said it might need further financing for working capital requirements and to develop existing projects.
Clontarf is not yet generating a revenue and relies on raising capital from the public market.
Post-period, in January 2023 the group raised £1,300,000 via a placing and a further £350,000 in June 2023.
OIL & GAS
In the chairman’s statement David Horgan said that Clontarf was in contact with the Ghanaian authorities to update the exploration acreage and to “resuscitate the ratification of its signed petroleum agreement on Tano 2A block”.
“We are keen to work out a mutually attractive solution that will enable ratification and bringing in of larger partners to explore this acreage, and hopefully develop any discovery.”
In the “frontier exploration” of Chad, Mr Horgan said the company remained in contact with the authorities and with other prospective African countries.
He added that recent price volatility showed that major new investment was required for global demand and that Clontarf planned “to participate in the coming boom”.